Letter of Credit Issuance
Guarantee payment to your suppliers
Letter of Credit Issuance
Guarantee payment to your suppliers
At a Glance
A Letter of Credit (LC) is issued at your request to assure payment to your supplier up to a stated amount, within a prescribed time.
Stronger ties
Build stronger relationships and support new business opportunities
On your terms
Ensure the necessary documents are received for goods clearance
Secure
Documents are checked for compliance and terms before you make payment
Features & Benefits
Help when you need it
Our experts can offer you advice and expertise
Leverage our “AA-” and “Aa1” credit ratings
Provide your sellers with assurances of payment through our Letters of Credit
Save time and ensure fast delivery
Apply for a Letter of Credit online via DBS IDEAL
How it Works
- The buyer and seller enter into a contract and agree that payment be made on the basis of Letter of Credit
- Buyer approaches DBS (issuing bank) to issue Letter of Credit in favour of the seller
- DBS issues Letter of Credit which is advised through its branch or correspondent bank (advising bank) in the seller’s country
- Advising bank advises Letter of Credit to the seller
- Upon receipt of the Letter of Credit, the seller prepares shipment and delivers documents to presenting bank
- Presenting bank despatches documents to DBS for payment
- DBS pays the presenting bank upon verifying the documents are in order
Upon receipt of payment, presenting bank pays the seller - Buyer pays the document amount to DBS
- DBS forwards the documents to the buyer, who can now use them to obtain the goods
Client Testimonial
“DBS helps us a lot in establishing whether the market, bank and customers are good enough for us.”
Mr Chandru Dadlani, Director - Aakash International Pte Ltd
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